TALLAHASSEE, Fla. (AP) - State regulators have ordered Conseco
Life Insurance Co. to show cause why its Florida license should not
be revoked or suspended for misleading approximately 5,000
For three years, the company failed to notify the state or customers that Lifetrend policies were underfunded, the Office of Insurance Regulation said Tuesday.
In November, Conseco demanded customers pay for the shortfall no
later than Jan. 3.
The company issued a statement admitting it erred, but saying it also would preserve its legal rights while trying to resolve the situation.
Conseco has put a 90-day moratorium on any further action on the
policies. It also has expressed regret and assured that no one would lose benefits.
(Copyright 2008 by The Associated Press. All Rights Reserved.)